SAN JOSE, Calif., Jan. 19, 2018 /PRNewswire/ -- Sanmina Corporation
("Sanmina" or the "Company") (NASDAQ: SANM) today announced
preliminary financial results for the first quarter ended
December 30, 2017 and the outlook for
the second quarter ending March 31,
2018.
The Company expects first quarter revenue of approximately
$1.74 billion versus the prior
outlook of $1.75 billion to
$1.80 billion. The
Company expects a first quarter GAAP loss per share of $1.85 to $2.27,
including non-cash adjustments for deferred tax and discrete tax
items of $2.03 to $2.31, restructuring costs of $0.19 to $0.33,
stock-based compensation expense of $0.12, and amortization of intangible assets of
$0.03. The Company expects
non-GAAP(1) diluted earnings per share of $0.48, versus previously provided outlook of
$0.68 to $0.74. (These preliminary financial results
are subject to change in preparation of the unaudited financial
statements for the quarter ended December
30, 2017.)
"Our disappointing financial results are driven by slower than
expected new program ramps and an unfavorable program mix," stated
Bob Eulau, Chief Executive Officer
of Sanmina Corporation. "Our GAAP financial results were
mainly impacted by the non-cash charge to our deferred tax assets
that resulted from the enactment of the Tax Cuts and Jobs
Act. We are right-sizing our fixed cost structure and we
remain confident that our pipeline is strong and our second half of
fiscal 2018 will be stronger than our first half as we continue to
execute on our strategy."
Second Quarter Fiscal 2018 Outlook
The following
outlook is for the second fiscal quarter ending March 31, 2018. These statements are
forward-looking and actual results may differ materially.
- Revenue between $1.60 billion to
$1.70 billion
- GAAP diluted earnings per share between $0.20 to $0.30,
including stock-based compensation expense of $0.17 and amortization of intangible assets and
restructuring costs of $0.03
- Non-GAAP diluted earnings per share between $0.40 to $0.50
Impact of Tax Reform Act
As a result of the enactment
of the Tax Cuts and Jobs Act (the "Act"), the Company expects GAAP
income tax expense for the first quarter to include a non-cash
charge of $150 million to
$170 million relating to the
reduction in carrying value of its net deferred tax assets.
The Company does not expect to incur any additional material cash
income tax expense in the first quarter as a result of the deemed
repatriation tax provisions of the Act. The Company is in the
process of finalizing these provisional amounts and will provide
further information about its GAAP income tax expense associated
with the Act in its earnings conference call for the first quarter
on January 29, 2018.
Company Initiates Restructuring Plan
On January 12, 2018, the Company adopted a
consolidated restructuring plan impacting three of its
manufacturing facilities. As a result of this plan, the
Company expects to incur restructuring charges of approximately
$25 million to $35 million over the period of the consolidated
restructuring plan, all of which is expected to be cash. In
connection with this plan, the Company expects to record charges in
its first quarter of fiscal 2018 of approximately $15 million to $25
million, consisting of severance and retention pay for
affected employees to be paid over the period of the consolidated
restructuring plan. The Company expects to complete the
actions taken under this plan through the first quarter of fiscal
2020. The Company will continue to evaluate the consolidated
restructuring plan, and any further actions that may be required
under it, which could cause the Company to incur additional
restructuring charges related to this plan in the future.
Company Conference Call Information
Sanmina will hold
an update conference call on Monday, January
22, 2018 at 8:30 a.m. ET
(5:30 a.m. PT). The access
numbers are: domestic 877-273-6760 and international 706-634-6605.
The conference will also be webcast live over the Internet.
You can log on to the live webcast at www.sanmina.com. A
replay of the conference call will be available for 48-hours.
The access numbers are: domestic 855-859-2056 and international
404-537-3406, access code is 4347487.
The Company will announce full financial results for the first
quarter fiscal 2018 on Monday, January 29,
2018 at 5:00 p.m. ET
(2:00 p.m. PT). The access
numbers are: domestic 877-273-6760 and international 706-634-6605.
The conference will also be webcast live over the Internet.
You can log on to the live webcast at www.sanmina.com. A
replay of the conference call will be available for 48-hours.
The access numbers are: domestic 855-859-2056 and international
404-537-3406, access code is 5278659.
(1) The non-GAAP earnings per share estimates
contained herein exclude charges or gains relating to: stock-based
compensation expenses, restructuring costs (including employee
severance and benefits costs and charges related to excess
facilities and assets), acquisition and integration costs
(consisting of costs associated with the acquisition and
integration of acquired businesses into our operations), impairment
charges for goodwill and other assets, amortization expense and
charges associated with distressed customers, litigation
settlements, gains and losses on sales of assets and redemptions of
debt, deferred tax and discrete tax items to the extent material in
the applicable period.
About Sanmina
Sanmina Corporation is a leading
integrated manufacturing solutions provider serving the fastest
growing segments of the global Electronics Manufacturing Services
(EMS) market. Recognized as a technology leader, Sanmina provides
end-to-end manufacturing solutions, delivering superior quality and
support to Original Equipment Manufacturers (OEMs) primarily in the
communications networks, storage, industrial, defense, medical,
energy, and industries that include embedded computing
technologies, such as point of sale devices, casino gaming and
automotive. Sanmina has facilities strategically located in key
regions throughout the world. More information about the Company is
available at www.sanmina.com.
Sanmina Safe Harbor Statement
The Company's
preliminary results for first fiscal quarter revenue and earnings
per share and outlook for the second fiscal quarter, expectations
for the second half of fiscal 2018, expected restructuring charges
and estimated GAAP income tax expense for the first quarter
relating to the Act are all forward-looking statements within the
meaning of the safe harbor provisions of Section 21E of the
Securities Exchange Act of 1934. Final results could differ
materially from those projected in these statements as a result of
a number of factors, including changes to the estimates given
herein as a result of completion of quarter-end closing activities,
including finalization of all entries, adverse changes to the key
markets we target, operational and other inefficiencies, risks
arising from our international operations, competition that could
cause us to lose sales, reliance on a relatively small number of
customers for a substantial portion of our sales and the
other factors set forth in the Company's annual and quarterly
reports filed with the Securities Exchange Commission.
The Company is under no obligation to (and expressly disclaims
any such obligation to) update or alter any of the forward-looking
statements made in this release, the update conference call or the
Investor Relations section of our website whether as a result of
new information, future events or otherwise, unless otherwise
required by law.
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SOURCE Sanmina Corporation